However, there remains skepticism about SoftBank’s portfolio of privately-held startups in its two Vision Funds. The second Vision Fund, funded entirely by SoftBank and Son personally, is mired in losses after a series of markdowns enforced by a tumultuous time for tech shares. SoftBank’s own stock is down more than 35 percent from its peak in 2021, while it trades at a discount of about 50 percent to its NAV. Some analysts also warn of a potential bubble forming in the recent upward climb in Arm’s shares.
Key takeaways:
- SoftBank Group Corp. is expected to report a strong quarter with a net income of ¥373 billion ($2.5 billion), marking its first profit in over a year.
- The profit is largely due to a gain on its stake in T-Mobile USA Inc. and rising valuations for startups in its Vision Fund portfolio.
- Arm Holdings Plc, SoftBank's most prized holding, has rallied more than 40 percent since it went public in New York last year, contributing to SoftBank’s net asset value.
- Despite the positive outlook, skepticism remains about SoftBank’s portfolio of privately-held startups in its two Vision Funds, with the second Vision Fund mired in losses after a series of markdowns.